The Evolution of Personalization
In a digitally dominated market, personalization has transformed from a luxury into a tactical necessity. For businesses looking to expand their customer reach, personalization is no longer about maintaining competitive parity but rather an essential factor in outperforming competition, especially where 73% of B2B executives consider personalized marketing necessary for growth.
Moreover, 92% of companies worldwide use AI-driven personalization to boost engagement and loyalty among customers. So, from broad-based outreach to significantly relevant and personal experiences, this change describes how businesses have to change to fulfill and go beyond customer expectations. This is especially true when we look at the use of personalization with consumer wellness products and retailers who market them.
In this new era, we are experiencing a complete shift from “one-size-fits-all” marketing to more advanced personalization strategies, looking at how companies that genuinely embrace true personalization are thriving, and what the future holds for those who regard it as an afterthought.
The Early Days of One-Size-Fits-All Marketing
Initially, personalization was very simple. Companies treated their consumers as segments within a very broad demographic classification – age, gender, income, or location. The underlying assumption was that people with similar characteristics would have similar preferences. This opened up the possibility of creating “one-size-fits-all” messaging and product recommendations, which unfortunately missed many consumers’ targets and became a limitation rather than an advantage.
For instance, consider these disadvantages of the non-personalized approach:
Generic Outreach: Broad demographic targeting often results in irrelevant recommendations, which frustrates consumers. Accenture discovered that 91% of consumers prefer to buy from brands that offer personalized deals, something basic segmentation cannot achieve.
Missed Opportunities: Brands fail to uncover deeper customer insights, which resuls in static engagement and low loyalty, without repurchase.
Inflexible: This approach was not able to keep pace with changing consumer needs. This overgeneralization excludes consumers with distinctive needs and interests. For instance, placing younger consumers into a segment solely based on age ignores significant variations in lifestyle and culture among them.
Generic marketing messages frustrate 63% of consumers, says Demand Science.
“It’s like throwing darts blindfolded – sometimes you would hit but mostly you would miss.”
With the demand for relevance growing, brands can no longer rely on this one-dimensional model for matching their products to consumers. For consumers, finding brands they truly will benefit from has become almost impossible.
The Role of AI in Personalization
The dawn of Artificial Intelligence (AI) was the turning point in the journey of personalization. With AI, companies could handle and analyze massive data sets with unprecedented speed and accuracy. This helped create completely personalized experiences that stretched way beyond the demographics-based personalization.
IBM states that 71% of consumers expect businesses to provide personalized interactions and that 67% of them are irritated when companies fail to do so. So, with AI, brands can transition from broad segmentation strategies, to hyper-targeted, real-time recommendations delivering solutions crafted “just for you” rather than “for someone like you.” This creates an “it’s for me” moment in the consumer’s mind that will make them more likely to purchase the product. Traditional advertising uses varying forms of imagery to create this, but it’s overly generic and creates an exorbitant customer acquisition cost.
Personalization in the Wellness Industry
The wellness industry is among the fastest-growing sectors adopting personalization, with anticipation reaching a market value of $6.3 trillion by 2025. Throughout the world, transformation through enhanced personalization has responded to the burgeoning demand for customized health solutions.
AI has been especially impactful in shifting the focus from what worked for the average population to creating wellness programs that are specific to individuals. This applies to young and old with regard to supplements, nutrition, physical and occupational therapies, rehabilitation, behavioral modification, and understanding one’s own health.
Imagine a wellness program built upon real-time health data—metabolic rate, activity levels, and sleep patterns. This would increase engagement and improve health outcomes. Even research shows that nearly 80% of consumers are more likely to interact with brands that offer personalized experiences, indicating a strong preference for customized interactions.
Only AI-MD provides biomarker-based recommendations for wellness supplements, leading this new movement by using a consumer’s objective biomarkers to align individuals with personalized wellness products using just a smartphone or computer camera connected to the web. AI-MD is helping wellness brands convert more clients and turn one-time buyers into loyal subscription users. We replace traditional product quizzes and use objective biomarkers to connect brands to customers that will truly see an impact from their product.
AI-MD adds a layer of precision with an AI-powered health assessment that allows users to screen for over 2,000 potential conditions, using varied forms of input from the user including images, video and audio recordings for analysis. This proactively empowers individuals to make informed decisions based on data regarding their wellness journey, thereby boosting engagement and satisfaction as they take ownership of their health.
Future Trends in Personalization
As Angela Ahrendts, former SVP of Retail at Apple, noted, “Personalization is the way to cut through the noise and make a meaningful connection with customers.” Her leadership at Apple highlighted the significant effects that personalization had on consumer loyalty as well as brand interaction.
Personalization has moved from reactive to proactive, owing to advancements in wearable tech, health apps, and data-driven solutions like AI-MD. Wellness and healthcare sectors may soon find that AI is capable of predicting what a user needs before the user even becomes aware of it. Healthcare providers might once again be able to predict health risks and deliver targeted interventions just in time rather than later.
What’s Next?
AI-powered personalization won’t be an option anymore; it is a necessity. The future belongs to those brands and businesses that offer products, services, and experiences uniquely tailored to a person, rather than a broader audience. With personalization at its core, the marketplace will soon outpace companies that ignore this concept. After all, in a world where personalized offerings are driving engagement, loyalty, and business growth, personalization will not be yet another tactic but rather an essential hallmark of success in the future.
Leveraging the AI-MD Bioquiz can set your brand apart from the competition, driving growth in your organization by matching your prospects with health and wellness solutions that are shown to work for people like them, harnessing AI driven insights. After getting a quick health scan with Bioquiz on your site, AI suggests the best formulations to help address any health concerns from over 2000+ possible conditions.
Explore hyper growth! Get a demo of AI-MD Bioquiz for hyper-personalized recommendations of your health products.
in the Bay Area.